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Republic Industries, Inc. Reports Fourth Quarter Comparable Net Income Rose 55 Percent To $103.7 Million, Or $0.22 Per Share

Jan. 28, 1999

FORT LAUDERDALE, Fla., Jan. 28 /PRNewswire/ -- Republic Industries, Inc. (NYSE: RII) today reported that for the three months ended December 31, 1998, comparable net income increased 55 percent to $103.7 million, or $0.22 per share, from $66.9 million, or $0.15 per share, last year. For the year ended December 31, 1998, comparable net income rose 68 percent to $487.9 million, or $1.04 per share, from $290.3 million, or $0.67 per share, last year. These results exclude certain one-time gains as well as restructuring and other charges. During the three months and year ended December 31, 1998, the Company recorded a $11.6 million, or $0.02 per share, after-tax gain as income from discontinued operations from finalizing the previous sale of its security services division.

Revenue for the three months ended December 31, 1998 rose 65 percent to $4.8 billion from $2.9 billion during the same period in 1997. Revenue for the year ended December 31, 1998 increased 70 percent to $17.5 billion compared to $10.3 billion last year.

Operating income for the three months ended December 31, 1998, increased 101 percent to $195.2 million from $97.3 million for the same period last year. Operating income for the year ended December 31, 1998, increased 88 percent to $834.5 million from $443.7 million. The 1997 results exclude restructuring and other charges.

Commenting on the Company's performance, Steven R. Berrard, Co-CEO of Republic Industries, said, "1998 was a year of tremendous growth for Republic Industries. We acquired or agreed to acquire 181 new car franchises and we opened nine AutoNation USA megastores bringing our total to 34 company-owned stores and eight franchise locations. We began rolling out our Global Odyssey Operating System in our National Rental Car operations, we consolidated our insurance replacement rental car operations under the CarTemps USA brand name, and we opened 62 insurance replacement locations bringing our total to 388 locations."

Mr. Berrard added, "The highlight of our fourth quarter was the launch of our Denver project, which includes innovative customer satisfaction and customer retention initiatives. The initiatives include a one-low-price, no- haggle selling environment, and the re-branding of all our dealerships as 'John Elway AutoNation USA.' The preliminary results of this project have exceeded our expectations and support our advertising slogan 'It's about lower prices. It's about higher standards. It's about time.(SM)' "

Republic Industries, Inc. operates subsidiaries in the automotive retailing and automotive rental industries. The Company owns the nation's largest chain of new vehicle dealerships and is building a chain of used car megastores, which it operates under the AutoNation USA brand name. Republic also owns National Car Rental System, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA. The company also owns 63.9% of Republic Services, Inc. (NYSE: RSG), one of the leading providers of non-hazardous solid waste collection and disposal services in the United States.

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied in such forward looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.

                          REPUBLIC INDUSTRIES, INC.
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In millions, except per share data)


                     Three Months Ended Dec. 31,  Twelve Months Ended Dec. 31,
                          1998       1997              1998        1997


    Revenue            $4,825.5  $2,928.2        $17,487.3   $10,305.6

    Expenses:
    Cost of operations  4,031.9   2,428.1         14,481.5     8,540.6
    Selling, general and
     administrative       598.4     402.8          2,171.3     1,321.3
    Restructuring and
     other charges          ---     150.0              ---       244.1

    Operating income
     (loss)               195.2    (52.7)            834.5       199.6

    Interest (expense)
     income, net          (5.8)       0.2           (17.7)         1.4
    Other income (expense)(0.5)       7.8            (1.6)       114.4

    Income (loss) from
     continuing operations
     before income taxes  188.9    (44.7)            815.2       315.4

    Provision (benefit)
     for income taxes      68.0    (15.9)            293.4       115.2

    Income (loss) from
     continuing operations
     before minority
     interest             120.9    (28.8)            521.8       200.2

    Minority interest in net
     income of subsidiary (17.2)      ---           (33.9)         ---

    Income (loss) from
     continuing operations 103.7   (28.8)            487.9       200.2

    Discontinued operations:

    Income from discontinued
     operations, net
     of income taxes        ---       ---              ---         9.5
    Gain on disposal of
     electronic security
     segment, net of
     income taxes          11.6     230.0             11.6       230.0

    Income from discontinued
     operations            11.6     230.0             11.6       239.5


    Net income           $115.3    $201.2           $499.5      $439.7




    Diluted income (loss)
     per common and
     common equivalent share:
    Continuing
     operations           $0.22   $(0.07)            $1.04       $0.46
    Discontinued
     operations            0.02      0.54             0.02        0.56
    Net income            $0.24     $0.47            $1.06       $1.02

    Weighted average
     common and common
     equivalent shares    472.6     427.6            470.9       430.9


                          REPUBLIC INDUSTRIES, INC.
                     UNAUDITED SUPPLEMENTAL SEGMENT DATA
                                (In millions)


               Three Months Ended Dec. 31,      Twelve Months Ended Dec. 31,
                    1998           1997             1998              1997

    Revenue:
    Auto-
     motive
     retail $3,640.6 75.4% $1,866.0 63.7% $12,664.6 72.4%  $6,122.8   59.4%
    Auto-
     motive
     rental   807.5  16.8%   769.0  26.3%   3,453.6 19.8%   3,055.1   29.7%
    Solid
     waste
     services 377.4   7.8%   293.2  10.0%   1,369.1  7.8%   1,127.7   10.9%
           $4,825.5 100.0% $2,928.2 100.0% $17,487.3 100.0% $10,305.6100.0%


    Operating Income:
    Auto-
     motive
     retail  $105.7   2.9%   $26.6   1.4%    $395.8  3.1%     $81.6    1.3%
    Auto-
    motive
     rental    20.0   2.5%    19.4   2.5%     193.7  5.6%     180.7    5.9%
    Solid
     waste
     services  83.1  22.0%    59.9  20.4%     299.3 21.9%     211.5   18.8%
    Corporate
     expenses(13.6)          (8.6)           (54.3)          (30.1)
    Restructuring
     and other
     charges    ---        (150.0)              ---         (244.1)
             $195.2   4.0% $(52.7)  -1.8%    $834.5  4.8%   $ 199.6    1.9%

SOURCE Republic Industries, Inc.
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